Ondas Holdings Inc. (NASDAQ:ONDS) surges 5.7%; retail investors who own 53% shares profited along with institutions

Explore Ondas Holdings's Fair Values from the Community and select yours

Key Insights

• Significant control over Ondas Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 18% ownership
• Institutions own 11% of Ondas Holdings

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To get a sense of who is truly in control of Ondas Holdings Inc. (NASDAQ:ONDS), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that benefitted the most from last week’s US$352m market cap gain, institutions too had a 11% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Ondas Holdings.

See our latest analysis for Ondas Holdings

What Does The Institutional Ownership Tell Us About Ondas Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Ondas Holdings. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ondas Holdings' earnings history below. Of course, the future is what really matters.

Ondas Holdings is not owned by hedge funds. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 3.7%. Meanwhile, the second and third largest shareholders, hold 2.6% and 1.9%, of the shares outstanding, respectively. Furthermore, CEO Eric Brock is the owner of 1.1% of the company's shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ondas Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Ondas Holdings Inc.. In their own names, insiders own US$14m worth of stock in the US$934m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 53% of Ondas Holdings shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Ondas Holdings (of which 2 are a bit concerning!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.